CoreLogic Global Services Private Limited, a subsidiary of U.S.-based CoreLogic (NYSE: CLGX), a leading provider of information, analytics and business services, has estimated that the retail real estate finance market in India is pegged at about Rs.50-60,000 crores and growing at 15-18 percent per year. According to CoreLogic India, national and regional banks account for 60-65 percent of the value and the rest by specialist housing finance companies.
“The business of transforming real estate into long term financial assets includes several processes. Lenders have been performing most of these processes in-house to ensure reliability, control and information security. Innovations in technology and metric-driven process control have made it possible for an increasing number of these business processes to be outsourced to competent third party providers who can more effectively automate and also variabilize processing cost,” says Vinaya Chandran, vice president, strategic markets, CoreLogic India.
According to CoreLogic India, with 1 to 1.2 million new loans originating yearly and growing by 12 to 15 percent, lenders need to invest disproportionately to capture market share. Outsourcing more of the consumable and processing services is a very effective way to free up the capital for growth.
CoreLogic India has further identified four key areas in the Indian home loan market services:
Valuation Management - Property valuation is perhaps the most important risk management process in originating a loan. The valuer’s competence, due diligence process adherence, adequate disclosure and conflict of interest prevention are critical to delivering accurate valuations.
Loan Analytics – Lenders have to understand, assess and mitigate risk every step of the way in a loan life cycle. Examples include filtering high-yield loan leads, assessing pre-underwriting risk, developing hazard scores for property insurance and consistently tracking loan portfolios against industry benchmarks.
Information Extraction – It is important to have competency in developing technology that moves the potential process from extracting fixed form location sensitive information to context sensitive extraction from free flow information. This has enormous potential in comparing documents, finding keywords and building descriptor databases from document images in the financial, legal and healthcare industries, among others.
Building and running databases – Business information services in the home loan sector demands a very high quality of database building and production quality operation expertise. In India, the advantages of high quality, scalable data infrastructure is becoming increasingly evident. As business volumes rise and transactional complexity increases, important data gets buried in inactive document archives. An organization’s competitive advantage is sharpened by its information competence.
CoreLogic Global Services Private Limited:
CoreLogic Global Services Private Limited previously known as The First Indian Corporation began operations in Hyderabad in 1994 and now operates as a subsidiary of U.S.-based CoreLogic. This company has pioneered the use of mortgage process off shoring and over the past 15 years grown to become a leading U.S. mortgage and real estate-focused technology, analytics and transaction processing organization. Headquartered in Bangalore, CoreLogic Global Services has over 4000 employees in Bangalore, Hyderabad, and Mangalore.
For more information visit www.corelogic.in
About CoreLogic:
CoreLogic (NYSE: CLGX) is a leading provider of consumer, financial and property information, analytics and services to business and government. The company combines public, contributory and proprietary data to develop predictive decision analytics and provide business services that bring dynamic insight and transparency to the markets it serves. CoreLogic has built the largest U.S. real estate, mortgage application, fraud, and loan performance databases and is a recognized leading provider of mortgage and automotive credit reporting, property tax, valuation, flood determination, and geospatial analytics and services. More than one million users rely on CoreLogic to assess risk, support underwriting, investment and marketing decisions, prevent fraud, and improve business performance in their daily operations. Formerly the information solutions group of The First American Corporation, CoreLogic began trading under the ticker CLGX on the NYSE on June 2, 2010. The company, headquartered in Santa Ana, Calif., has more than 10,000 employees globally with 2009 revenues of $2 billion.
For more information visit www.corelogic.com
